Mezzanine debt struggles to stage a comeback

Providers are fleeing, fundraising is shrinking and the amount used to finance deals has flatlined so far this year

By

Kiel Porter

Updated: June 18, 2012 7:25 p.m. GMT

European mezzanine – a form of debt that ranks low in a company’s capital structure – has constantly trumpeted itself as the answer to the financing gap. The market has found another solution. At the start of this year, hopes were high that the mezzanine sector would build on the momentum generated in 2011.

European mezzanine issuance in Europe last year totalled $2.2bn across sevens deals, according to data provider Dealogic.